UNITED STATES SECURITIES AND EXCHANGE

   Securities Act of 1933
   Release No. 7676 / May 11, 1999

   Administrative Proceedings
   File No. 3-9892

   CEASE-AND-DESIST PROCEEDINGS INSTITUTED AGAINST GARY J. PIERCE AND
   C.S.I. AG. FOR FRAUDULENT INTERNET OFFERING

   The Commission has issued an order instituting public cease-and-desist
   proceedings pursuant to Section 8A of the Securities Act of 1933
   against Gary J. Pierce, of Studio City, California, and C.S.I. Ag., a
   Turks & Caicos company.

   In the order, the Division of Enforcement ("Division") alleges that
   from July 1997 to February 1999, Pierce and CSI solicited investments
   in a $500 million unregistered bond offering for the Government of
   Free Vietnam, a political association in Garden Grove, California, via
   its Internet website and its newspaper. The Division further alleges
   that the promotional materials promised potential investors who made
   an initial $10,000 minimum investment a 5.5% annual return, plus
   double their original investment at the end of five years, resulting
   in an overall average annual return of at least 19.6%. According to
   the Division, Pierce and CSI represented that the bond offering was
   collateralized by $500 million of CSI's gold reserves in Chile, the
   total value of which was in excess of $20 billion, when, in fact, they
   had no reasonable basis for assigning any value to any such gold
   reserves, and they knew or were reckless in not knowing that the
   extraction of any existing gold would take years and millions of
   dollars. The Division further alleges that Pierce and CSI knowingly or
   recklessly failed to disclose the fact that 70% of the money invested
   would be used for fees and other activities that would generate no
   revenue, and that only 30% would be invested in an unspecified "yield
   rich trading program," which would have to generate an average annual
   rate of return on those funds in excess of 56% for five years to pay
   investors the rates of return promised. The Division alleges that
   Pierce and CSI violated Sections 5(c), 17(a)(1) and 17(a)(3) of the
   Securities Act.

   A public hearing will be scheduled to determine whether the
   allegations against CSI and Pierce are true and, if so, whether a
   cease-and-desist order should be entered pursuant to Section 8A of the
   Securities Act.
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Modified 05/11/1999